Ten major banks and mortgage companies are settling with federal regulators over accusations they wrongfully foreclosed on homeowners.
JP Morgan Chase, Wells Fargo, Citi, Bank of America are among the banks that will pay a total of $8.5 billion to resolve the claims against them. Homeowners that lost their homes in 2009 and 2010 are eligible to receive cash payments, while others still in their homes could get mortgage relief.
In addition, Bank of America is paying more than $10 billion to mortgage finance giant Fannie Mae to settle claims over mortgages the bank sold to the agency that later soured.
Joe Nocera, op-ed columnist for the New York Times and a WNYC contributor said, "Bank of America has essentially announced it is getting out of the mortgage business."